Praj Industries inks deal to co-develop lactic acid yeast technology

The shares of Praj Industries were trading in green on Wednesday after the company announced that it has signed a memorandum of understanding (MoU) to co-develop Lygos’ proprietary yeast for the production of lactic acid.

As part of the MoU, Praj will be provided with Lygos’ proprietary yeast platforms such as LP1 Ultra Yeast Platform and Carbon Sequestration Superhighway, for developing various solutions for commercial applications to establish a leading position in compostable polymers.

Lactic acid is used in food and beverages, in cleaning agents and in the electronic industry. The global market size for lactic acid was estimated to be around US$ 1 billion in 2019.

The company stated that it will further assemble other segments of technology backed up by its expertise in process development, optimisation, design scale-up and will further integrate lactic acid as a source material to make bioplastic, polylactic acid (PLA).

The demand for PLA acid is approximately 2,00,000 tonnes per year, which is expected to increase substantially in near future. Unlike conventional plastic, PLA does not take decades to degrade and thus, does not have an adverse environmental impact. Increased consumer awareness with regards to its recyclability, green packaging and sustainability is driving significant demand globally.

On Wednesday, the company’s stock closed at Rs 64, up by 2.07 per cent or Rs 1.30 per share. The 52-week high is recorded at Rs 144.50 and the 52-week low is Rs 43 on BSE.